The way I see it, despite the strong odds, management continues to do enough to put most (if not all) of the company's past concerns to rest. Not to mention, the company must also adjust to performance-impacting law changes imposed by the Affordable Care Act, a.k.a. Obamacare.
If there were any real concerns this quarter, it's on the operating side. Margins did take a step backwards, falling 2% and missing estimates. But much of this was due to the sales mix and currency exchange rates. Plus, I'm willing to excuse this miss given that management was able to cut spending to help spur profits 5% higher.
As I've said, with the stock already at a 52-week high, there are better bargains out there. But that's not to suggest Stryker can't continue to offer above-average long-term gains. There's still value to be extracted from the MAKO deal, and I believe management's new vision has begun to change the culture of the company.
In short, I'm projecting this stock to reach $90 per share on the basis of 6% free cash flow growth.
At the time of publication, the author held no position in any of the stocks mentioned.
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.